4 Financial Accounting · 4.5 Depreciation, reserves, single entry and non-trading concerns

4.5.2 Single entry system (statement of affairs) and accounts of non-trading concerns (receipts and payments, income and expenditure)

Under the single entry system (incomplete records) profit is found by comparing capital at two dates through statements of affairs; non-trading concerns (clubs, societies, hospitals) prepare a receipts and payments account (cash summary), an income and expenditure account (surplus or deficit on accrual basis) and a balance sheet.

  • APPSC Paper I
  • Advanced level
  • 10 min read
  • Full course

Key terms

  • single entry
  • incomplete records
  • statement of affairs
  • net worth method
  • conversion method
  • total debtors account
  • credit sales
  • non-trading concerns
  • not-for-profit organisation
  • receipts and payments account
  • income and expenditure account
  • capital fund
  • surplus
  • deficit
  • subscriptions
  • legacy
  • entrance fees
  • life membership fees
  • special fund

What this note covers

  1. Core factsFoundation
  2. ExplainedStandard
  3. DeeperAdvanced
  4. Mains writingMains writing
  5. Common trapsFoundation
  6. Quick revisionFoundation

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